Benzinga | Apr 29, 2021 08:17AM EDT

Communications Systems To Sell Its Transition Networks And Net2Edge Businesses To Lantronix For $25M Paid At Closing Plus Up To Additional $7M In Earnout Payments

Communications Systems, Inc. (NASDAQ:JCS) ("CSI" or the "Company"), an IoT intelligent edge products and services company, today announced that it entered into a definitive securities purchase agreement ("Purchase Agreement") with Lantronix, Inc. (NASDAQ:LTRX) ("Lantronix"), to sell the Company's Transition Networks and Net2Edge businesses to Lantronix for a base price of $25.0 million to be paid at closing, subject to a working capital adjustment following the closing, plus up to an additional $7.0 million in earnout payments based on revenue milestones for the Transition Networks and Net2Edge businesses in the two 180-day periods after closing of the sale.